MG Network

something big isHappening!

In the mean time you can connect with us with via:

Copyright © Money Grows Network | Theme By Gooyaabi Templates

Money Grows Network

Archive

Powered by Blogger.

Welcome To Money Grows Network

Verified By

2006 - 2019 © www.moneygrows.net

Investments in financial products are subject to market risk. Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only.

Popular

Pages

Expert In

Name*


Message*

Burning outlook: Inflation index CPI (USA) 12:30 PM London time

CPI inflation index forecast + 1.9% (annually)

Inflation index CPI previously + 1.7%

The range of forecasts: +1.8 to + 2.1%

Why is it important?

Inflation is one of the two most important indicators of the state of the economy for the decision making by the US Central Bank (Fed) on monetary policy. (The second indicator is employment).

For the US Federal Reserve, the normal range of inflation is from + 2% to + 2.5% per annum.

As we can see, inflation in the US is below the lower normal level for the Fed (for many years, since the crisis of 2008-2009.)

However, perhaps a rise of inflation above the level of 2% will be seen.

The Fed, sequentially, is very slow in taking steps, but turns to tightening monetary policy - new Fed rate increases (the plan is in December) - and the beginning of withdrawing excess liquidity from the markets.

Thus, inflation is an important indicator of monetary policy - and its movement affect the dynamics of bond yields, the stock market - on capital flows between countries - and at exchange rates, respectively.

If inflation hits above 1.8%, the dollar will strengthen, the euro and pound down, the dollar-franc and the dollar-yen up. Gold will down, and the US stock market down.

If inflation is 1.7% or less - the euro and a pound will rise a little higher.

The material has been provided by InstaForex Company - www.instaforex.com